FOR IMMEDIATE RELEASE:  October 25, 1988


         FTC CHARGES NORTH CAROLINA INSULATION INSTALLER
        MISREPRESENTED AMOUNT OF INSULATION IT INSTALLED;
        COMPANY AGREES TO INSTALL MORE FOR PAST CUSTOMERS


     The Federal Trade Commission has charged in federal court
that Milcon Industries Inc., which does business as Blue Ridge
Insulation Inc., misrepresented the amount of insulation it 
installed in residential and commercial buildings, in violation
of the FTC's R-value rule and the FTC Act.  To settle the
charges, Milcon agreed to install additional insulation for
certain past customers.

     R-value in insulation is a measurement of resistance to heat
flow.  The FTC's R-value rule, among other things, requires in-
stallers to tell consumers the R-value of home insulation they
install.

     The complaint charges that Milcon did not install a suffi-
cient amount of insulation to achieve the R-value, thickness
after settling, or number of bags of loose-fill insulation, that
were represented to customers in a contract or receipt.

     The complaint and consent decree also name Robert T. Miller
and David H. Condrey, officers of the company.  Milcon is based
in Hendersonville, N.C.

     Under the consent decree filed with the complaint, the
defendants agreed to offer to install 12 percent more loose-fill
insulation in buildings where Milcon installed insulation between
January 1, 1983, and August 31, 1985.  They also agreed to pay
$10,000 in civil penalties, but will not have to pay any civil
penalties if 50 percent of the affected consumers participate in
the redress program.  The company and the officers are also
prohibited from violating the R-value rule in the future, and
from misrepresenting the R-value of the insulation installed in
commercial buildings, which are not covered by the rule.

     The investigation was handled by the FTC's Atlanta Regional
Office.

     The complaint and consent decree were filed yesterday by the
Department of Justice, at the FTC's request, in the U.S. District
Court for the Western District of North Carolina, Asheville
Division.

     This consent decree is for settlement purposes only and does
not constitute an admission of a law violation.  Consent decrees
have the force of law with respect to future violations.  Each
violation may result in a civil penalty of up to $10,000.

     Copies of the consent decree and complaint will be available
soon from the FTC's Public Reference Branch, Room 130, 6th St.
and Pennsylvania Ave. N.W. Washington, D.C. 20580; 202-326-2222;
TTY 202-326-2502.

                             # # # 

MEDIA CONTACT:      Susan Ticknor, Office of Public Affairs, 
                    202-326-2181

STAFF CONTACT:      Paul Davis, Atlanta Regional Office,
                    404-347-4836

(Civil Action No. A-C-88-252)

(FTC File No. 852 3246)

(milcon)